Sign on Bonus

[MeghanD]

What is the name of your state?What is the name of your state? California

Want to know if i have any rights... please bare with me as i tell the story

I worked for one company that ended up going out of business and filing bankrupcy. The CFO of that company decided to open up a new company. I was asked to work at the new company. Because I was not paid my PTO from the first company I stated that I would not sign onto the new company unless my new boss to give me a sign on bonus of the equivalent to what I lost ($3,000). He stated that he would make it a Christmas bonus as he did not have the money currently. Well Christmas came and went and nothing came across. I got terminated in mid-January due to no fault of my own. Now i am wondering am i not entitled to the $3,000 that he promised me as my terms for signing on to the business? Also I do not have this in a written contract but it was a verbal contract with a witness present.

What are my rights?

Thanks for any help you can offer!

 

[Beth3]

You have the right to hire an attorney, file suit, and hope a judge rules that the statements made by the CFO constituted a binding oral contract. Of couse the problem with that is (a) the outcome is uncertain and (b) it's expensive. Even if a judge rules in your favor, you could spend that much or more on legal fees.

I'd suggest two cheaper options.

1. Have an attorney write a letter threatening legal action if the bonus is not paid to you by [reasonable date], and/or
2. File a claim in small claims court.

 

[Beth3]

I just noticed you're in CA so there is one other option you can try before those two. CA has a "fair dealing" statute that applies to employers so you should call CA's Department of Labor and see if they can assist you. It's a long-shot but it's worth a call.